Let's start this update with important news from outside Montpelier: tariffs. The White House released a plan last week to implement sweeping tariffs on all U.S. imports of at least 10%, plus higher, additional "reciprocal" rates varying by country, set to take effect 4/5 and 4/9, respectively. Here's a story with the different tariff rates listed, and another with some information about how the different rates were calculated. This is a noticeably different policy decision compared to the various other tariff proposals that have been proposed, revoked or implemented in the past two-plus months, and it's safe to say by last Friday afternoon that the stock market reacted poorly to the announcement. What isn't entirely clear still is what the precise impact will be on construction materials costs and, therefore, your work. Both VTDigger and Vermont Public have reported stories on the "Vermont angle" of the news, including an estimate from state Treasurer Mike Pieciak that the tariffs may collectively cost Vermont households approximately $1 billion per year.

Here's what AGC National had to say about the new tariffs in a story they published:

 

"The full impact of these tariffs on the construction industry remains uncertain, but AGC is closely monitoring developments and assessing potential consequences for contractors. Jeffrey D. Shoaf, AGC’s chief executive officer, emphasized the importance of clarity in navigating these changes. 'Now that the President has provided specific details about his tariff plans, the private sector can decide how best to proceed with planned projects,' Shoaf said. 'Our hope is that the benefits of greater clarity and supply chain certainty outweigh the impacts of higher materials prices and construction costs.'"

 

Remember that AGC National also has a standing, continually updated tariff resource page online, plus an upcoming webinar titled, 'Taming Tariff Troubles: Risk Mitigation Strategies for Managing Tariff Impacts' on 4/16 at 2 PM. Please do keep in touch with me if you begin to feel the impacts of these tariffs in your businesses, whether that be from materials cost increases, to contracts dropping off due to clients' financial fears. Knowing what's happening on the ground helps me advocate for you most effectively in the Statehouse, and I'll do what I can to help you.

 

In the Statehouse last week, much of AGC's priority bills were relatively lowkey, receiving preliminary walkthroughs from their opposite chambers now that bills have "crossed over." The House and Senate's housing committees, for example, are reviewing the opposite's respective housing bills, which Rep. Marc Mihaly described as complimentary to one another last week (as opposed to conflicting, which can certainly happen between the two chambers...). Over the next few weeks, we'll see the two chambers edit one another's work from the first half of session, and in cases like the two housing bills, meld two plans into one.

 

Similarly, the Senate Transportation Committee now has ownership of this year's T Bill, and can begin its work beefing it up. It's not published yet, but I know VTDigger is imminently slated to publish a story on the funding cliff facing the T Fund. Stay tuned for that.

 

To reinforce our priorities with legislative leadership, Richard and I met with House Speaker Jill Krowinski in the Statehouse last week for a private meeting, where we discussed all of the important issues you already know and love: namely transportation funding, housing reforms, and support for career and technical education. There's promising movement being made on all of these issues, in both the short and long term. The meeting was amicable and productive, which is great not just for those policy priorities, but also toward the larger goal of building productive relationships with legislative leaders on both sides of the aisle.

 

If a theme has emerged in recent days/weeks in the Statehouse, I would say it's austerity. With the federal government clawing back billions in federal grants and programs in recent weeks, Vermont — which receives a great portion of its total state resources from the feds — is likely headed toward leaner times. Factor in, on top of that, economists' broader concerns for the nationwide economy after this week's stock market tank. There are already rumblings in the halls about a hypothetical special legislative session this fall, should federal resources become so scant that lawmakers need to rewrite the Fiscal Year 2026 budget. Even as they take their first crack at it now, they are noticeably more cautious about spending state resources than I've seen in Montpelier in recent years.

 

That said, that hasn't stopped one major fiscal fight from breaking out between the Legislature and Gov. Phil Scott. Last week, legislators voted to pass a second draft of the annual Budget Adjustment Act, after Scott vetoed their first version, citing its broad extension of the General Assistance motel/hotel program (a perennial political flashpoint in Montpelier). After Scott signed an executive order to extend the program just for families with children and medically vulnerable participants, lawmakers dug in their heels and sent over a second version of the BAA — still with the full extension. But Scott won't budge. Friday afternoon, he vetoed it yet again, writing, "I'm hopeful, the Legislature will stop sending me bills they know I will veto and instead send me a clean budget adjustment bill without controversial policy, so we can move forward with the many challenges we face."

 

A final programming note: Richard and I are jet-setting to exotic Columbus, Ohio this week for AGC's national conference. Yeehaw! While I will surely return to Vermont brimming with lifelong memories of traveling with Richard, I likely won't be a wealth of Montpelier-centric knowledge from the week... So perhaps brace yourself for a lighter email edition next week. (And don't worry: Our contract lobbyists Heather and Emma will take great care of us in the Statehouse while I'm in scenic Ohio.)

 

Keep in touch,